Manual MTF Pledge Discontinued Starting Feb 24th, 2025

[Pranita]

Dear Users,

As per latest SEBI Regulations on Direct Payout starting Feb 24th 2025, new exchange regulations will simplify the process for booking MTF (Margin Trading Facility) positions.

You will no longer need to manually pledge your MTF purchases; they will automatically be pledged and reflected in your portfolio as part of your MTF holdings from the next day. Few more things to keep in mind are as follows:

1. Auto-Pledge of MTF Purchases: All MTF shares will be auto-pledged once credited to your demat account by the clearing corporation. No MTF OTP will be required.

2. Pledge Charges: No changes in DP or pledge charges.

3. Handling Delivery Shortages: Both “market” and “internal” shortages will now be settled through the clearing corporation’s auction. If shares aren’t received in the auction, a closeout credit will be added to your ledger. For MTF positions, short-delivered shares will be converted to delivery and adjusted in your Dhan ledger.

4. Pre-Delivery Sell (BTST): For shares received via auction, there may be delays in pay-in processing due to new pledge/unpledge requirements. If pay-in fails, auction debits/penalties may apply.

To explain this with an example :

• You buy 100 SBI shares using MTF on Monday. They appear in your holdings by Tuesday and will auto-pledge when credited to your demat account by 5:00 PM.
• If only 50 shares are credited on Tuesday, the remaining 50 will arrive by 11:00 AM Wednesday as part of the auction payout and be auto-pledged.
• If only 25 of the remaining 50 shares are credited, the other 25 will be closed out, and a credit will reflect in your trading ledger.
• If you sell these 100 shares on Tuesday, Dhan will handle pay-in based on when shares are credited:
  • 50 shares credited Tuesday will go for pay-in the same evening.
  • Pay-in for auctioned shares will be attempted by 10:30 AM Wednesday. Any shortfall may lead to an auction debit and penalties, handled on a best-effort basis.

Please get in touch with us on help@dhan.co in case of any other doubts.

P.S : As a caution, we advise traders to be mindful while taking BTST trades for Tue Feb 25th, 2025 incase there are any hiccups similar to the last implementation by the clearing corporation.

[itsKeshav]

It’s still asking for authorisation

[Pranita]

Hey @itsKeshav ,

Please ignore this, your stocks will be automatically pledged. You will be able to see the necessary changes on all platforms from next week onwards.

Thanks,
Pranita

[itsKeshav]

Was that only for 2 days?

[Pranita]

Hey @itsKeshav ,

It was supposed to be a permanent change. However there were some issues with clearing corporations due to which the changes had to be rolled back. We will keep you updated on the revised effective date as soon as its out. You can read more about it here.

Thanks,
Pranita
Product @ Dhan

[pavz]

So now eis it like even if it’s a single yes Bank share bought at 20rs , it will be auto pledged and charged around 20rs

[Ritesh_Srivastava]

Any update on this, is auto pledging available now?

[thisisbanerjee]

Not yet. It is likely to take a few more months.

[Pranita]

Note: This will be effective starting Feb, 24, 2025 i.e Monday. Have edited the post above.

[Rajesh7581]

Awesome action taken which will reduce manual pledging
However, SEBI-NSE rules & regulations are getting more & more worse nowadays !!!

I think, its time to switch towards Crypto & Forex trading

[Sumit_Pal]

If I Buy Stock/ ETF with MTF with various multiple orders at different time in one Trading day , Will i be charged for Indivisual pledge charges for the same script for multiple orders of different quatity at different time in a day.

[pavinjoseph]

@Rajesh7581

I think, its time to switch towards Crypto & Forex trading

Systemic risks are much higher with those

[Pranita]

Hey @Sumit_Pal ,

Welcome to the Made For Trade Community. Pledge charges will be applicable per request per ISIN .

Thanks,
Pranita